Daimler AG CEO Dieter Zetsche has received a three-year contract extension from the board today, securing him in the post through 2013, though some inside the company believe that it could eventually go beyond that.
Whether Zetsche gets a contract extension beyond 2013 depends by and large on how he navigates the company through the current crisis facing the premium car market. Recent appointee to Daimler”s board of management Wolfgang Bernhard stands to inherit the reins should Zetsche not be able to get the job done. Zetsche and Bernhard have a long-standing history dating back to 2000 when they first met at Chrysler.
The pair must work towards a solution for Mercedes” lack of scale and cost-competitiveness in the compact segment, as BMW is hammering Mercedes-Benz with its fuel-efficient line up and Audi receives immeasurable advantage as part of a unit with Volkswagen.
Click through for the press release.
Supervisory Board of Daimler AG extends contracts of Dr. Dieter Zetsche and Dr. Thomas Weber and appoints Dr. Wolfgang Bernhard to the Board of Management
– Daimler Board of Management again consists of six members
– Dr. Bernhard assumes responsibility for Mercedes-Benz Cars Production and Procurement and for the Mercedes-Benz Vans division
In its meeting today, the Supervisory Board of Daimler AG extended the contract of Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, until December 31, 2013. The contract of Dr. Thomas Weber, Board of Management Member for Group Research and Mercedes-Benz Cars Development, was also extended until December 31, 2013. Furthermore, the Board of Management will once again consist of six members. Dr. Wolfgang Bernhard has been appointed to the newly created position for Mercedes-Benz Cars Production and Procurement as well as the Mercedes-Benz Vans division with immediate effect, meaning as of February 18, 2010. He is appointed until the end of February 2013.
Dr. Dieter Zetsche has been a member of the Daimler Board of Management since December 16, 1998 and Chairman of the Board of Management since January 1, 2006. He is also Head of the Mercedes-Benz Cars division. Dr. Thomas Weber has been a member of the Daimler Board of Management since January 1, 2003, with responsibility for Group Research and Mercedes-Benz Cars Development since May 1, 2004.
The contracts of Dr. Zetsche and Dr. Weber would have expired in December 2010. In accordance with Section 84, Subsection 1 of the German Stock Corporation Act (AktG), the Supervisory Board makes a decision on reappointment after the beginning of the last year of office. The three-year extension effective as of January 1, 2011, reflects Daimler”s general policy to conclude contracts for a period of three years, in case of both initial appointments and reappointments.
Dr. Wolfgang Bernhard has been appointed as an additional member of the Board of Management. Dr. Bernhard, who became Head of Daimler”s Mercedes-Benz Vans division in April 2009, assumes Board of Management responsibility for Mercedes-Benz Cars Production and Procurement as well as for the Mercedes-Benz Vans division. A successor for his current position will be appointed soon.
– By: Stephen Calogera